EUR/USD upside momentum begins to wane as buyers lose near-term control

Technical Analysis

EUR/USD continues to back away after a failed attempt to move above 1.1000

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EUR/USD D1 22-05

The move higher this week managed to get above the 100-day MA (red line) but buyers could not do more to to break above 1.1000 or to test the 200-day MA (blue line) @ 1.1014.

As such, sellers have leaned on those levels and are helped by the more defensive risk flows in the market – amid risk-off vibes – to push the pair lower over the past few sessions.

The move now is also breaking below the broken trendline as seen above and is keeping under the 100-day MA, so that will give sellers more incentive to keep the move going.

Looking at the near-term chart:

EUR/USD H1 22-05

Things are also not looking good for buyers as we see price action now fall back under its 100-hour MA (red line). That means the near-term bias has turned from being more bullish to being more neutral currently.

The next near-term support is seen closer to 1.0900-02 before revisiting the 200-hour MA (blue line) @ 1.0878. The latter will be a key spot to watch as a break below that will allow sellers to seize near-term control and build further momentum.

As for buyers, the first immediate topside target will be to regain territory above the 100-hour MA @ 1.0933. There is still much work to do even after that, having to then chase the 100-day moving average @ 1.0965 before re-approaching resistance @ 1.1000-14.

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